Levels to watch: FTSE 100, DAX and Dow
Recent gains have seen the indices move towards key resistance levels. Will they break through or turn lower?
FTSE 100 pushing towards key resistance level
The FTSE 100 has maintained its bullish momentum, as the index pushes towards the 7371 resistance level.
The wider uptrend seen over the first months of 2019 points towards a bullish break through 7371 to continue the trend of higher highs and higher lows. As such, watch for a potential break through resistance to signal further upside over the short term. An inability to break that level could mean some form of pullback instead.
DAX starts to weaken after recent rally
The DAX has been easing back following a rally into the 76.4% Fibonacci resistance level. The prior drop below 11,405 pointed towards this rally being a possible retracement before we turn lower once more.
This could be the beginning of that move, where a break through 11,825 would be required to negate the possibility of a bearish reversal. Until then, watch for whether we can build any bearish momentum from here.
Dow consolidates at key resistance level
The Dow Jones has rallied into the critical 26,241-26,277 resistance zone, representing the peaks from late February and last November.
With the index starting to show signs of weakness, this resistance zone could prove too much for now. As such, watch for a bearish turn from here, with a break through the 26,300 region required to signal a continuation of the recent gains.
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